"Actually this argument forgets skilled trades and small manufacturers. We make a unique product in the water industry, but only sell a few thousand a year. The market is probably ten times that - but only if people choose to comply with the regulations - which they won't unless forced. So only those at risk of inspection buy our kit."
And what happens when someone else comes up with a way to cheaply do short runs on demand using techniques like 3D printing (not necessarily for the part itself but perhaps to produce molds)? Then they can plunk down because they can combine many short orders and still be profitable because their works are more versatile and can switch jobs more easily.